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FCC Orders Comcast To Stop Labeling Equipment Rental a Service Fee
An anonymous reader writes "The FCC denied an appeal by Comcast, which argued that its practice of charging customers separately for a DTA (digital terminal adapter) -- a converter box that allows cable subscribers with older televisions to receive digital channels, which the company said would be provided at no charge -- is not subject to rate regulation, because it is a service fee. The ruling was issued on March 19."
Also from the article: "In an e-mail last week to the Star Tribune, Comcast vice president of corporate affairs Mary Beth Schubert said the case “involved a relatively minor dispute about the way certain items are presented on the rate card but has no effect on overall pricing.” But, [Michael Bradley, an attorney whose firm represented Minneapolis-area franchising authorities in the dispute] argued the FCC’s decision sets a strong precedent for transparency within the cable industry."
Comcast does not care what the FCC says. They have legislators in their pockets to make sure no real action will ever be taken against them. They will flat out ignore FCC regs and know that nothing will ever come of it.
How about cancelling cable TV and finding something else to do with your time?
We had cable. "Extended analog cable" if I remember, which was to say, no premium channels, no "digital" channels (this was as DTV was kicking off but was not yet mandatory), so about 80 channels of content, perhaps 60 channels that weren't some variation of an OTA broadcast.
With eighty channels there were times when we couldn't find anything that we wanted to watch. We would end up watching complete and total crap, because we were paying for it and felt obligated to watch it. One day I realized that I was coming home from work, watching four or more episodes of CSI, and going to bed. Eventually I started seeing the same episodes over again, and realized that this needed to stop.
We got rid of our cable TV subscription. Still have Internet, still have phone, but now I don't have to pay to find that there's nothing on TV, and since TV doesn't cost me anything I don't feel guilty about not turning it on. I go play music or work on something or read or even surf the Internet.
Just let it go. Trust me, it will be okay.
Do not look into laser with remaining eye.
The summary says it's "a converter box that allows cable subscribers with older televisions to receive digital channels," but now that the FCC allows cable companies to encrypt ALL channels, it's pretty much mandatory. Sure, you might be able to convince them to give you a CableCARD for your compatible TV, but I've heard that they make it difficult to get.
$0.99 - Convert box rental (Equipment fee)
$18.99 - Converter box software update and 30-day license installation (Service fee)
This example shows how low they will go to defraud their users. Just how many cable subscribers are using non-HDTV sets? This is obviously their lowest tier customer class, so it is likely that they are making the least amount of profit from these users. That is why they picked this group to gouge.
There no real relationship between what they charge and what the delivery cost is. The content charges are just as artificial. The only competition is how the profits from the overpriced service is divided up. The only looser is the customer.
This situation is normal when there is no real competition. It's identical to the telcos and the banks and the pharmaceutical companies and ...
No capitalism here, just move along.
Why is Snark Required?
I'm never ceased to be surprised by your guys prices never match the advertised price. Surcharges/Fees/Taxes/Tips flying everywhere. About the only time I paid the price adverted was buying gas. And it's not like it's predictable "Oh, things will be 10% over the price", nope every industry from hotels to airlines to cellphones has it's own rules and offsets. Why hasn't there been a consumer revolt yet?
For the times I want to watch live sports, I go where there is no cost to watch: a sports bar. Living where I do, another possibility is the sports book. The only disadvantge is I have to share the bathroom, and the drinks cost more. I've been off cable for more than ten years. Really haven't missed it.
"13 channels of shit on the TV to choose from."
but this doesn't stop them from charging whatever they want. There's no indication the FCC is going to attempt to regulate the pricing for them.
A real win for customers would be the ability to buy them.